It’s high time companies strengthened their tax governance

TAX governance – or having clear processes and controls to manage tax risks – is now more important than ever for large organisations.

The need to reduce tax leakage, the increased digitalisation of business transactions, and greater tax transparency are driving authorities globally to introduce tax control frameworks for companies. Measures such as the Organisation for Economic Co-operation and Development (OECD)‘s Base Erosion and Profit Shifting (BEPS) initiatives are being adopted to ensure large businesses, especially multinational groups, pay their fair share of taxes.

Singapore is no exception. By recently introducing two voluntary tax governance programmes, the Inland Revenue Authority of Singapore (IRAS) has sent a clear message – tax governance is not just a “good to have”. It should be a “best practice” for taxpayers.